Right of Ownership
An owner is any person who has the legal right of possession of the vessel. The most regular processes in which a person may gain ownership of a vessel is by purchase with money, as a trade for other property or by way of an inheritance or a gift. As owner you have the right to insure the vessel.
Joint ownership occurs where more than one person has made a financial contribution to the purchase of the vessel, whether or not in equal proportion; has received a part of the vessel as a trade or settlement against other property or has received a share by way of inheritance or gift.
A joint owner is a part owner who has a financial interest in the vessel and one who is entitled to enjoy the same benefits of the insurance policy as the lead named Insured.
Where Joint ownership is declared details of each additional owner will be required in order to name them as a Joint Owner / Insured on the Schedule.
Cancellation of insurance must be the unanimous agreement of all joint owners named on the Schedule.
Instruction to delete a named joint owner must either be from the named individual or their authorised representative. Following the death of a named Owner / Insured we will continue to note their financial interest in the vessel ‘in the estate of’ until such time as we are provided with a copy of the certified death certificate and written evidence of beneficiary.
Mortgagees / First Loss Payee
You do not need to tell us where a personal loan or finance has been arranged to fund the purchase cost of a vessel or your share of a vessel, but you do need to tell us if there is a marine mortgage in place.
A marine mortgage is provided under legal agreement with a bank or financial institution and is where the vessel is used as security. If you do not make payments in line with the mortgage agreement the lender may assume ownership of the property in exchange for the loan.
Mortgagees require their financial interest to be noted on the insurance documentation and will often ask to be noted as ‘First Loss Payee’. In the event of a claim for loss of the vessel the claim settlement will be made to the Mortgagee allowing them to re-coup their funding. The Mortgagee will settle any remaining funds directly to you.
We automatically provide copy documentation to Mortgagees noted on the schedule of insurance and are obliged to notify them when cover is amended, cancelled or allowed to lapse.